Ethical Leadership and Corporate Social Responsibility, Thesis of Business Accounting

Download Ethical Leadership and Corporate Social Responsibility and more Thesis Business Accounting in PDF only on Docsity! ETHICAL LEADERSHIP C206 TASK 2 1 C206 Ethical Leadership C206 Task 2 Western Governors University Table of Contents A1. Corporate Social Responsibility & Stakeholder Overview......................................3 A2. CSR Analysis For Paradigm Toys............................................................................3 B1. Importance Of Ethical Culture..................................................................................4 B2. Purpose Of Ethics Audit...........................................................................................5 C1. Ethical Framework....................................................................................................5 C2. Solutions To Ethical Dilemma..................................................................................6 C3. Solution Recommendation........................................................................................6 D1. Ethics Training Program...........................................................................................7 D2. Recommended Delivery Method For Training.........................................................7 References........................................................................................................................9 ETHICAL LEADERSHIP C206 TASK 2 2 A1. Corporate Social Responsibility & Stakeholder Overview Corporate Social Responsibility (CSR) is a way of understanding a firm's economic, social, and environmental impacts. It is often used as an umbrella term to encompass a firm's efforts to make the business sustainable in the long run, including environmental (Trevino & Nelson, 2014). Many companies are using CSR as a cornerstone of their business philosophy and strategy, mostly because stakeholders expect companies to use resources responsibly (Trevino & Nelson, 2014). There are many books and papers written about CSR and how companies are evolving their business strategies to impact the societal greater good. While some people may see CSR as a way for businesses to "check a box," companies with good CSR programs in place impact society in tremendously positive ways. We can break down CSR into three main categories. Pragmatism, where companies use CSR to impact their positive image to influence customers and stakeholders. Ethics, this is where companies do the right thing and contribute to humanity. And lastly, strategically, where companies distinguish themselves by partnering with customers and stakeholders to benefit society in areas such as job growth. ETHICAL LEADERSHIP C206 TASK 2 5 make determinations on where and how to apply the correct solutions and then communicate those to all stakeholders. C1. Ethical Framework A recent ethical dilemma that I was personally involved with was when a customer sent me a competitor's pricing schedule for their products, which is proprietary information. I had built significant trust with this customer over the last few years and recently helped them save a substantial amount of money. As a goodwill gesture, my customer sent me a competitor's pricing schedule because he knew that I was competing for other businesses in the area against this competitor. The dilemma here is, what should I do about the customer sending me proprietary information? I could delete the file and not bring it up to the customer, or I could confront the customer with what he did, but that could impact my relationship with him and our existing business relationship. C2. Solutions To Ethical Dilemma The first solution to this dilemma is to delete the pricing file and never speak to my customer about sending me the file. The risk is if he asks me about the data and what I did with the information, it will force me to either confront the truth or lie. The only way this scenario works out well is if the customer never mentions the file again. Unfortunately, I believe he would ask me because he was proud of getting the data to me and would want to know how it helped. The second solution to this dilemma is to confront my customer and tell him that he should not have sent the file, and after following company policy, I deleted it. Depending on how I handle the conversation, it could potentially hurt the relationship. This type of confrontation also depends on how good the relationship is and whether the customer trusts me enough to know that I'm doing what is right. ETHICAL LEADERSHIP C206 TASK 2 6 C3. Solution Recommendation I believe the second solution is the correct solution. For one, I know my relationship with the customer is healthy and that calling him out on the ethical issue would not destroy the relationship. If handled properly, I can create even more trust and build the relationship even further because the customer would then trust me in the future with sensitive information that he shares. Starting the conversation with the right intent and explaining the ethical dilemma to the customer can deepen the trust within the relationship. D1. Ethics Training Program My proposal for an ethics training program within Paradigm Toys will include three key topics that are 1) Employee Code of Conduct, 2) Handling of Confidential Information, and 3) safety. The employee code of conduct is vital to manage the company's expectations of employee ethical conduct. This topic covers a wide range of issues ranging from workplace behavior, commitment to the organization, and proper computer, internet, and email usage. It explicitly outlines what employees must do in certain situations, like reporting workplace harassment. How Paradigm Toys describes the employee code of conduct and then enforces, it sets the standard for the overall ethics program. The handling of confidential information is essential to maintain integrity within our company for proprietary information and the protection of trade secrets. Some of the toys that Paradigm Toys manufacturers have trade secrets and the security of those secrets are paramount to the success of the company. How employees discuss internal manufacturing techniques with suppliers, customers, and other stakeholders is critical in maintaining proper information protocols. ETHICAL LEADERSHIP C206 TASK 2 7 Lastly, safety is an important training aspect for ethics because we want and expect our employees to maintain safe working environments and to feel empowered to come forward when there are safety-related issues. We will provide orientation safety training for all new hires, job- specific training, and general safety policy training on how we expect our employees to approach the safety culture. Effective training will help minimize workplace injuries, make our workforce more productive, and institute a culture that allows all people within the organization to speak up when they see an unsafe act. D2. Recommended Delivery Method For Training To begin employment at Paradigm Toys, all new employees will attend a two-day in- person instructor-led orientation that includes at least 4 hours of mandatory ethics training. This initial ethics training will cover all aspects of our ethics program and will conclude with the passing of an exam with a minimum of 80% score. Further, all existing employees will have 12 months to attend the 4-hour instructor-led training at company headquarters. Once the initial training is complete, annual refresher training will be given online with an exam at the end. Lastly, we will provide front-line supervisors the flexibility to offer on-the-job ethics training with "ethics time-outs." These time-outs give anyone at any level of the organization the opportunity to bring up an ethics dilemma. The supervisors are empowered to engage their teams on the proper ethical policies and train those that need extra guidance. Any effective training program must be relevant, timely, and impactful for employees to change their habits and absorb the information. Investing in instructor-led training is costly to the organization, but it is also the most impactful. The timeliness of the training is important, which is why we will mandate all new employees to attend ethics training. Even existing employees will be required to participate within 12 months. This timeliness shows the consideration that